Bilibili Receives Stake Of $317.6 Million From TENCENT!Another Options Trade To Consider Is Included!

Bilibili is soaring – up 7.96%
at close of market; and up 8.56% by end of after-hours trading. An option call trade was recommended to “Cut-To-The-Chase” Members on Monday,
August 27, 2018, originally based on earnings and the rapidly growing
streaming play in China; at the time providing potential profits of 171% - but
now, with the investment from Tencent of $317.6 million, the potential profit
has soared to 411%.

Gaming platform Bilibili Inc (NASDAQ: BILI), another
rapidly growing streaming play in China, is
confirmed to report earnings today, Monday, August 27, 2018, after the market
closes. The consensus estimate is for a loss of $0.03 per share on revenue of
$142.41 million.

Who Is Bilibili?

BILI is a Chinese hybrid of Twitch, Crunchyroll, and Kings Games. The
company listed on the NASDAQ on March 2018,opening at $9.80 on its
first day of trading, and has a market cap of around $4 billion.

BILI's audience consists of over 77.5 million monthly active users (up
35% y/y in Q1) and 2.5 million paying members (up 190% in Q1).

So, for
“Cut-To-The-Chase” members, who managed to execute this trade recommended by
Stock Options Made Easy; potential profits of 411% were available yesterday –
maybe more will follow today if the stock price continues to climb and the market
responds positively.

Entering
the option trade at a cost of $0.60 or less; and the sell price on the option,
at the moment is $3.07; a potential profit of 411% is applicable. Therefore,
one options contract would provide a profit of $247.00; or 411% Potential Profit.

A NICE PROFIT FROM THIS OPTIONS TRADE!

What now…..

Bilibili had a 16% rise before the opening
bell, but declined to roughly 8% after the market commenced - still excellent!; due to the platform
receiving a $317.6 million investment from Chinese internet behemoth Tencent.
Under terms of the proposed transaction, Tencent will subscribe for nearly 25.1
million new class Z Bilibili shares at $12.67 each. After the deal closes,
Tencent will have a 12.3% ownership stake in Bilibili.

Bilibili and Tencent don’t give an exact date
of when the deal will close, but they expect it to be in the near future.
Bilibili is still currently going through its IPO. The extra money from that
and this deal will likely help it as it plans to further grow its business in
the country.

Morgan Stanley analyst Alex Poon said, in a
late September note, that the Tencent investment should come in handy, as
Bilibili is in the early stages of transformation, with the growth in its
investments outpacing revenue.

This surge in stock price
extends the recent uptrend the shares have enjoyed since dipping below $10 back
in mid-August, riding atop the 20-day moving average along the way. However,
the security was trading above $20 as recently as June.

There's a notable amount
of short interest on the Chinese stock, which only began trading publicly in
the U.S. back in March. Going by average daily trading volumes, it would take
BILI short sellers almost one week to cover their positions.

ACTION TO TAKE…….

** A New Options Trade To Consider: Buy the BILI JAN 18 2019 15.000 CALL at approximately $2.00. Sell
price is left to your own judgment.

Conclusion….

As you
would have by now realized, some of our trades are based on earnings
predictions. This is not to say all trades recommended to members follow this
pattern, but it is obvious that it applied earlier in this case; however, the
circumstances became enhanced with the Tencent investment. During earnings
season this strategy of predicting earnings has been very profitable.

Sometimes it is our approach to predict
whether a company will beat or miss estimates, whether the stock will
appreciate or depreciate as a result and what strategies investors and traders
can use – such as found with the “Earnings Predictions Program”. This type of
prediction is based on thorough investigation and fundamentally based research,
and the results have been very exceptional.
Strategies to Consider……

It is also worth
considering, when options trading earnings reports – “Do we exit on
already existing profits or leave the companies to report their earnings and
hope for bigger profit?”.....READ MORE.....